Post Utme Bells University 2024 Commerce Question 16

Practice objective / multiple choice question 16 from the 2024 Post Utme Bells University Commerce examination.

Post Utme Bells University 2024 Commerce Objective / Multiple Choice
Question 16 POST_UTME_BELLS_UNIVERSITY • 2024 • COMMERCE • objective
Post Utme Bells University 2024 Commerce Question 16 diagram

In a perfectly competitive market, the law of one price states that the price of a good is determined by the intersection of the supply and demand curves. However, this is not always the case. Consider a market where the supply curve is inelastic and the demand curve is elastic. What is the effect on the equilibrium price and quantity?

Answer Options

Correct Answer A. The equilibrium price increases, and the quantity decreases.
B. The equilibrium price decreases, and the quantity increases.
C. The equilibrium price remains the same, and the quantity remains the same.
D. The equilibrium price increases, and the quantity increases.
Correct Answer
A
Correct Option:
The equilibrium price increases, and the quantity decreases.

About This Question

This is Post Utme Bells University 2024 Commerce Question 16. It is one of the objective questions from the 2024 Post Utme Bells University Commerce examination.

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